MSA Safety enters amended, restated $600 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Sept. 10 – MSA Safety Inc. entered into a five-year $600 million amended and restated revolving credit agreement on Sept. 7, according to an 8-K filed with the Securities and Exchange Commission.

Up to the greater of $300 million of the revolver or 15% of the company’s consolidated net worth is available to MSA Safety subsidiaries MSA UK Holdings Ltd. and MSA International Holdings BV.

The credit agreement includes a $50 million sublimit for letters of credit and a $60 million sublimit for swingline loans. The company may request to increase the facility up to an additional $400 million.

Borrowings will initially bear interest at Libor plus 112.5 basis points. The margin can range from 87.5 bps to 175 bps, based upon the company’s net leverage ratio. The commitment fee is initially 15 bps and can range from 10 bps to 22.5 bps, also based on leverage ratio.

PNC Capital Markets, LLC, J.P. Morgan Securities LLC and Bank of America Merrill Lynch acted as joint bookrunners and joint lead arrangers, PNC Bank, NA as administrative agent and JPMorgan Chase Bank, NA and Bank of America, NA as co-syndication agents.

MSA must comply with some financial covenants, including a minimum fixed charges coverage ratio of 1.5 times and a maximum consolidated leverage ratio of 3.5 times, or 4.0 times for the three quarters following certain acquisitions.

The facility amends and restates the company’s second amended and restated credit agreement dated Dec. 11, 2015.

Proceeds may be used to refinance existing credit agreement debt, to pay in full and discharge the company’s notes issued in 2006 and for working capital and general corporate purposes.

Based in Cranberry Township, Pa., MSA Safety makes mine safety equipment.

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